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Wish to Pay Less Interest on a Home Loan? Follow This Guide to Know More!

Applying for a home loan is one of the most common ways of getting financial support to buy a house. There are many lenders offering home loans, but many people have second thoughts given their high interest rates. However, you should know that it is not always necessary to take a loan plan that has a high interest rate. It is possible to bring down the home loan interest rate that a lender is offering through many ways.

4 effective ways in which the interest rate of a home loan can be brought down:

  • Make a higher down payment for the property

A home loan does not cover 100% of the property price. You would have to cover about 20% to 30% of the principal loan amount, which is called the down payment. Now, many borrowers try to pay the minimum down payment so that their loan could cover the maximum expenses. However, it is advisable to pay a higher down payment, as this would mean borrowing a smaller loan amount. Repaying a smaller amount would not only be easier but also faster and would save interest on a limited tenure.

  • Consider different loan plans

Not all loan plans will have the same interest rates. This is why it is so important to consider numerous plans before settling for one. This way you can analyse different plans and understand which one is most suitable. Always use a home loan EMI calculator to know about the monthly instalments of the loan. Even a slight difference in the interest rate can make a significant difference in the overall cost of the loan. Also, do keep in mind to focus on other aspects that increase the total cost of the loan such as the processing fees.

  • Keep a good credit record

It is very important to have a good CIBIL record. This is not just for a home loan, but for any loan. Your credit score is always going to be an important factor in the lender’s evaluation process. Not just this, maintaining a good credit record can get lenders to offer a lower housing loan interest rate. This is because applicants with a good record (above 750) are a safer bet for lenders to rely on for timely repayments.

  • Clear the loan in a short tenure

This might come across as surprising considering most borrowers prefer going for a long tenure as this makes the EMI payments easier. However, repaying the loan in a long tenure means that the interest is adding up with each instalment. Therefore, repaying the home loan in a short tenure and cutting down the number of monthly instalments will help in cutting down on the home loan rate.

Also, you can avail tax benefits of up to Rs 2 lakh on the interest paid under Section 24(b) of the Income Tax Act of 1961. So, keep these tips in mind to save money on the housing loan interest.

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Loans

5 Factors to Remember Before Applying for a Home Loan

Are you buying a home? A home loan is the best way to purchase a house without spending all your savings and when you do not have enough money to make the complete payment. Banks have made the process of applying for a home loan pretty simple. Plus, the repayment plans are very flexible.

Here’s a look at 5 factors you need to keep in mind when applying for a home loan.

1. Down Payment

Down payment is the amount you pay in advance. The bank pays part of the home’s value, and you have to pay the remaining amount. Banks can pay up to 90% of the value of your house, which means you only need the remaining 10%.

The down payment requirements can vary depending on your:

  • Eligibility
  • Credit score
  • Property’s cost
  • Income

You can also volunteer to pay a higher down payment to reduce the interest rates on the home loan.

2. Interest Rate

Banks charge interest on loans, which is repaid with monthly instalments. The interest rates on home loans can be:

  • Fixed: The interest rate remains fixed for the term of the loan
  • Floating: The rate fluctuates as the market conditions change

A fixed-rate home loan is a good option if you want the amount payable to remain the same throughout the term of the loan. The floating interest, on the other hand, is for those who want to save money on the loan in the long run. It is typically 1-2% lower than the fixed interest rate. Compare the home loan interest rates of different banks online before making a choice.

3. Tenure

Tenure is the term of the loan. A long tenure means you get plenty of time to repay your home loan. It also eases your instalment burden, as you have to pay smaller instalments every month. The tenure may be as high as 30 years, which gives you enough time to repay at your convenience.

4. Additional Charges

In addition to the interest, there could be some other charges on a home purchase. Check out these additional charges in advance to get a clear idea of how much money you need when applying for a loan.

These expenses may include:

  • Processing fees: It’s paid after your home loan request is approved. The processing fee is mostly 1% of the total loan amount.
  • Late Payment penalties: There is no penalty on early payments, but delayed payments can cost you a fee. So, check the late payment penalty conditions with the bank.
  • Foreclosure: This is an amount paid if you pay off the loan before the term ends. This penalty is typically not applicable in floating interest rate home loans.

5. Tax Benefits

Tax rebates or benefits are available on home loans, especially for first-time homebuyers. Your taxable income can be reduced by up to Rs.1.5 lakhs on the interest you pay. These benefits are only for those who purchase a property priced at Rs.45 lakh or below.

A home purchase is a long-term decision. Consider the above factors before comparing home loans and choose one with the best interest rate and flexible down payment requirements.

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Loans

A BEGINNER’S GUIDE TO INVESTING IN MUTUAL FUNDS

You must often stumble across the term mutual funds. Do you wonder what is a mutual fund? Well, look no more. This articles aims to cover the basics about mutual funds such as what is a mutual fund, types of mutual funds, benefits of investing in mutual funds, and how to invest in mutual funds.

What is a mutual fund?

Mutual funds are investment vehicles that consists of a portfolio of several asset classes such as bonds, stocks, real estate, money market instruments, cash and cash equivalents, etc. The fund manager pools the money of several investors and invests in these securities.

Types of mutual funds

Based on asset class, mutual funds are divided into three types:

  1. Equity mutual funds – Also known as growth funds, equity funds invest more than 60% of their total assets in equity shares of companies as per SEBI’s (Securities and Exchange Board of India) categorization
  2. Debt mutual funds – Also known as bond funds or fixed-income funds, debt funds invest the majority of their portfolio in fixed-income securities such as corporate debt securities, government securities (g-secs), corporate bonds, money market instruments, government bonds, etc.
  3. Hybrid mutual funds or balanced funds – Hybrid funds invest in more than one type of asset classes, usually debt and equities.

Based on structure, mutual funds are divided into the following types:

  1. Open-ended mutual funds – Open-ended mutual funds are a type of mutual funds that can issue unlimited shares. Thus, an investor can purchase ‘n’ of shares on any working day at the prevailing NAV (net asset value) of the scheme.
  2. Close ended mutual funds – Under close-ended funds, units of a mutual funds are bought during the NFO (New Fund Offer) at NAV of the mutual fund. Post this, no investor can subscribe or sell their mutual fund units.

Benefits of investing in mutual funds

Following are some of the advantages of investing in mutual funds:

  1. Mutual funds help to diversify an investor’s investment portfolio.
  2. Mutual funds help to lower the tax outgo with the help of tax saving mutual funds or ELSS mutual funds that are eligible for a tax deduction of up to Rs 1.5 lac per annum.
  3. Ideal for investors who do not have the much-needed time and resources to study and understand the markets, mutual funds provide professional management to investors.
  4. Mutual funds are very transparent in nature as they are heavily regulated by the Securities and Exchange Board of India (SEBI).
  5. Mutual funds allow investors to invest small, insignificant amounts at regular intervals with the process of SIP investment. SIP or Systematic Investment Plan, thus, inculcates financial discipline among investors.

How to invest in mutual funds?

An investor has the option to invest in mutual funds either through the traditional offline way of investing or they can invest in mutual funds online from the comfort of your home. Thanks to advanced technology, investing in mutual funds will not take a huge amount of your time or efforts. You just need to submit certain documents such as PAN (permanent account number) details, bank details, etc. Next, you need to complete the KYC (know your customer) formalities, and submit a copy of cancelled cheque.

If you wish to calculate returns on mutual funds, you can use an investment tool known as mutual fund calculator. A mutual fund return calculator offers investors with an approximate future value of their mutual fund investments. Use this tool to your disposal and plan your investments carefully. Happy investing!

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Loans

Does Credit Score Lower your Home Loan Interest Rate – Explained!

Various factors determine your home loan interest rates, like, your income, age, qualification, property value, etc. Among all of them, your credit score is a crucial factor that has a larger impact. Your credit score determines the approval of your loan application and also interest rates. Therefore, you must know what a credit score is and why you should try to maintain a healthy credit score. Here is a brief guide on credit score and its impact on your home loan interest rates.

What Is a Credit Score?

A credit score or CIBIL score is a three numerical figure that represents your creditworthiness and repayment capacity. In India, the credit score is measured on a scale of 300 to 900, where 300 is the lowest and 900 is the highest. Lenders check your credit score whenever you apply for loans or credit cards. In India, the ideal credit score for a home loan is considered to be 700 and above.

How Is Credit Score Determined?

Credit bureaus take into account various factors while determining your credit score. They collect information about your financial history, debt and current obligation for the score. They keep a month- to month record of your EMI payments and credit card bills. They also consider your credit utilisation ratio, that is, the usage of your credit card. They also consider the number of debts you have and the number of times you apply for loans.

Why Does Credit Score Matter for Lenders?

Lenders take a huge risk when they lend you lakhs of money as a home loan. However, a healthy credit score is an assurance for the lender that you are capable of repaying the loan timely. A low credit score could indicate that your debt management is weak, and you could default in making payments. Therefore, lenders prefer an applicant with a high credit score to ensure that they will be paid back.

Does Credit Score Impact Your Home Loan Interest Rates?

With your credit score, the lenders judge if you will be able to repay the loan. Therefore, yes, a credit score is a crucial determinant of your home loan interest rates. If you have a score below 600, lenders can outrightly reject your loan application. It is because they have doubts about your repayment capacity.

The higher your credit score, the higher is your credibility and creditworthiness. Therefore, a low credit score can increase your interest rate. Whereas, if you have an exceptional credit score, you can expect to get an offer of low-interest rates from the lender. Many lenders also offer to waive the home loan fees and quicken the loan process for applicants with a high credit score.

A credit score is an important determinant of your home loan approval and interest rates. Therefore, before you avail a housing loan, you must check your credit score and proceed when you have a score of at least 700. If not, it is suggested to take steps to improve it before you apply for a home loan.

 

 

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Loans

How to get the best personal loans in Singapore

A personal loan is an amount you can borrow from a bank or money lender in case of an emergency or a planned expenditure that requires you to have more funds than you possess. While getting a personal loan gives you a certain freedom to be able to spend an amount for a need that would have otherwise been difficult for you, one must remember that a loan must be used responsibly.

Also, before applying for a loan there are certain things that you must consider including if this is the best personal loan for you. The best personal loans are ones that give you lesser personal loan interest rates and give you some flexibility to repay the loan amount. Before you zero in on a bank or money lender that you will be borrowing the loan from here are a few things you must consider to ensure you’re applying for the best personal loans.

Interest Rate

The number one question that you must ask any bank or money lender is the personal loan interest rate they are offering. Now when you talk about interest rate one must know the difference between Applied Rate (AR) and Effective Interest Rate (EIR). Now an Applied Rate is the one where the loan principal remains the same throughout the tenure of the loan. It does not take into account the fact that after each repayment the principal amount is reduced.

Now an EIR reflects the actual cost of borrowing provided the repayment is made on time. This is calculated after the consideration that over a period of time there will be a reduction in the principal amount.

Additional fees and processing charges

When you take a personal loan in Singapore remember that apart from the interest rate that you would be paying there are certain fees that you may consider too. A good personal loan promotion in Singapore is one that gives you a competitive annual fee. Now, an annual fee is the fixed sum that a bank charges as a fixed sum every year of your repayment plan. So, if you take five years to repay the loan you may have to give five instalments of annual fees.

Another thing that you need to keep in mind is the late payment fees. While you may have all the best intentions to repay the amount in time, sometimes unforeseeable events can happen and you may skip a payment or repay less than the agreed amount. A best personal loan is one that does not apply very hefty or stringent late payment fees.

The funds transfer

A personal loan promotion in Singapore often mentions the tenure in which you will be able to get funds transferred to your account. Depending upon the time and ease with which you can take a personal loan in Singapore one must consider choosing the bank or licensed money lender.

Remember a loan is required mostly in a situation where you need the money urgently so a quick loan is a factor that is to be considered. While it depends on a lender how quick their processing time is from your end you can quicken the procedure by keeping all your documentation ready and streamlined.

Lender assurance

Now for any financial transaction, the most important thing to consider is the reputation of the bank or the money lender. A lender who does personal loan promotion in Singapore often comes with a good review. A reliable and well-established lender is always transparent in their dealings, and does a thorough check of your credit history. A big bank with a reputed name should be your first choice for the best personal loans.

Early repayment fees

Another important consideration while applying for a personal loan in Singapore is also how much the bank will charge in case of early repayment. While a simple calculation may make you think that the lender should be happy to receive the amount early, this is not how transactions in the financial world work.

By repaying the amount earlier than you anticipated your lender or bank may not be able to make the expected profit on your money. In such a case you must ask beforehand about the early repayment fee for you to make an informed decision on the best personal loans in Singapore.

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Loans

Avail Instant Personal Loan Today Without Leaving Your House!

When uncertainties surround us in this day and age, personal loans can come to the rescue. The funds can be used to take care of a medical emergency, your dream wedding, home renovation, or any other personal fund requirement. The urgency of these funds hints that banks should release them as quickly as possible.

While availing of a personal loan may seem like a task, technology has solved the problem.

Lenders today offer instant personal loans at the convenience of your doorstep.

Yes, you heard it right! No more long queues and never-ending branch visits. If you need a personal loan, apply for it online keeping the eligibility criteria in mind.

The personal loan application is an instant and easy process that can be done online in just a few simple steps.

  1. Navigate to the personal loan section of your lender’s website
  1. Fill in your basic details and submit the documents required online. (Identity proof, Residence proof, Bank Statements, Salary Slips, and passport size photograph)

Et voilà, you’re done!

In no time, your lender’s backend team will then work their magic, and your loan will be approved.

Are you messy about your EMI calculations? We’ve got you covered!

You can navigate to the personal loan EMI calculator section online on your lender’s website.

The personal loan EMI calculator will help you determine:

  1. The monthly EMI you need to pay.
  1. The total amount of interest you’ll incur over the period.
  1. The total sum payable to the lender over the period.

Here’s why applying for a personal loan online is the right way to go:

  • Hassle-free experience:

With minimal documentation and a quick disbursal system, the online personal loan application system is the new mainstream.

  • Competitive Personal Loan Interest rates:

Lenders are providing the funds at the most affordable and competitive personal loan interest rates in the market.

  • Paperless Approvals for sanctioning:

The new framework claims to be paperless with all the formalities done online, along with an effortless personal loan application.

  • Quicker Disbursal of the fund:

You are barely a few clicks away from your loan disbursement.

  • Collateral free loan:

Personal loans can also be issued without collateral, provided you meet the lender’s eligibility criteria.

  • Prepay any amount any time:

You can choose to prepay your loan installments at any time and reduce your loan burden.

  • Unrestricted end use:

Unlike car loans or home loans, where the end use of the funds is restricted to the specified purpose, one can use a personal loan without any usage restrictions.

  • Plan your repayment schedule:

You no longer need the bank to decide the EMI. You can manage the repayment schedule all by yourself. The personal loan EMI calculator will be available at your disbursal to calculate your EMI.

  • Flexible tenure:

One can choose any tenure between the range specified and can pay his EMI according to the calculation done by the Personal Loan EMI Calculator.

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Loans

Valuable Points To Remember Before Taking Loans For Starting A Restaurant

Now is the best time to move on in life and follow your dreams. If you have been contemplating starting a restaurant business for a long time, go for it now. But there is a lot of work to handle beyond just setting up a restaurant and café than planning the menu and décor. You have to think of where and how to procure the loans for the same too. Here we provide you with a list of things to do and cross off the checklist for an easy reckoner.

Note the Things You Need

It would include getting the trade license, the website domain, and the license fees. Then you will need capital for establishing property and renovating it along with the purchase of inventory. Also, you will need various essential kitchen appliances, including the mixer and kettle. Listing down the various sites offering the best kettle brand in India and other appliances will be handy later.

Moreover, having working capital in hand for the regular expenses like purchasing fresh vegetables or meat daily and paying the staff members’ wages is also essential.

Check the Types of Loans Available 

You can get regular or conventional loans with a low rate of interest. You can even decide the number of years for the loan. The only areas of concern with these loans would be the need to wait for long to get these loans after tons of paperwork and providing collateral.

You may even go for the short-duration loans that can be ideal for working capital or daily expense management. There are long-duration ones if you are willing to pay the loans back in as long as 10 years.

Go through the Documents and Eligibility

You need to check through this list of eligibility before you apply for a loan. Check whether the financial institution asks for collateral or plans to hypothecate the property in exchange for the loan. Also, see if it wants an excellent credit score to get that loan. If you have all of these, see if the bank is asking for a specific down payment. Once you pay a certain percent of the entire amount as a down payment, please take a copy of the document and show it as proof. It would give the bank the trust in you to invest in your project loan.

Anticipate Problems and Have Backup

Many small and startup restaurants often start with their old and second-hand furniture or appliances. Chances are there for these to fail to work after some time or break. These are problems that you would need to anticipate. If your AC fails, you will at least need to have the best portable air cooler. You might also need to look out for power emergencies. These require you to plan and save well in advance.

With these pointers in mind, you will have to prepare for taking loans for your startup café or restaurant. None of these expenses are unprecedented, and hence, do not leave out any of you starting a new restaurant business today.

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Loans

Need a Quick Loan of $3000? 4 Tips for Getting It

Are you in need of a $3000 loan today? Many lenders are willing to give you a 3000 dollar loan, regardless of your credit situation.

But finding that lender isn’t as easy as you think. You need the right tips and tricks to find your way through that loan you’ve been coveting.

Here are the four tips you should consider before applying for that $3000 loan.

Ensure You Know Your Credit Score

The first thing you have to do is check your credit score. Lenders will check your credit history to see if you’ll be able to repay the loan.

While you can still get approved for a loan with your fair or bad credit score, it is important to have an excellent credit score.

An excellent credit score will increase your chances of getting approved and with a good interest rate. If you doubt your credit score, you can get your credit score report from any of the credit bureaus.

And if there are any errors, talk to credit bureaus about the errors. You need to set everything right before making an application.

Do Your Research

To get first approval for your 3000 dollar loan, you have to do your research. Before you apply for a loan, know exactly what your lender will be looking for to approve your loan.

Ensure you can meet your lender’s requirements and you can repay the loan on time. If possible, provide your lender with a copy of your credit history so that they can automatically check your capacity to pay.

Provide Necessary Documentation

Your lender will let you know if you need to provide any documentation and how it will get to the right person.

To make a quick decision regarding your documents, you need to provide this information early enough. Always be ready to present all the necessary and accurate documents when applying for this loan.

Depending on your lender, you will need to provide details such as your name, address, and contact information. You will also need to provide information regarding your income, employment, and the reason for the loan.

Note that all lenders have different opinions regarding qualification requirements and may ask you for different information. However, you can complete your loan application online.

Only Go for a Reputable Lender

After carrying out your research, pick the lender that will adhere to loan needs.  Not every lender willing to give you alone is worthy of your application.

Remember, you’re a customer like any other, and you deserve the best. Don’t act out of desperation by choosing any lender you come across because this can push you into a financial mess.

To find a reputable lender, make sure you go through their online reviews and ask for references. Getting a second chance credit loan in Montreal may not be easy but it isn’t impossible.

Just keep in mind that anyone willing to give you the loan easily could be a scammer. Carry out all the due diligence because a huge financial decision will be involved here.

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Loans

Using a Loan in Singapore to Change Your Life

A loan in Singapore might be all that you need to move to the next level. However, there are some people who hear the term loan and start fearing because of nasty experiences in the past. Think of a situation where one takes a loan and finds it hard to repay. The subsequent events, such as low credit score, harassing credit recovery agents, and even auctioning off personal items, can be heart-breaking. However, we will tell you how you can use a personal loan to change your life.

Use the Loan to Fund Your Education for More Skills

Whether you are employed or run your own business, new skills might be all that you need to move to the next level. If you do not have the funds to pay for further training and an education loan is off limit, a personal loan is the way to go. Remember that a personal loan in Singapore comes with impressive flexibility, meaning that part of the cash can be used to pay tuition, fund transport costs, and other related costs.

A Loan in Singapore can Help You to Address Emergency

Emergencies strike when we are least prepared for them. The first line of action when dealing with emergencies is using the funds in the emergency kitty, but what do you do if the funds are not enough? Taking a loan in Singapore will be a great idea. For example, you might want to consider using a personal loan or small loan to top up the amount in an emergency account.

When dealing with emergencies, your focus should be identifying a loan that can be processed fast and with good terms. For example, what is the interest rate? What about the loan term? To get the loan with the best terms and conditions, consider working with loan comparison sites, such as Lendela.

Funding a Major Purchase

Think of it this way – you have always wanted to have a car, but putting all the cash together has been challenging. For others, it might be a major asset that will change their lives greatly. Well, do not give up on buying this crucial asset because licensed moneylenders in Singapore are there to help. They give you the money and allow you to pay in installments. Is that not awesome?

If you want to buy a car, there are three main options:

  • Buying through a dealership: The seller works with lenders to help you with all the paperwork and secure credit for you.
  • Buying through a bank: Instead of buying a car through a dealer, you might opt to go directly to the bank and ask for a car loan.
  • Personal loan to buy a car: If the first two options are not viable or desirable, you can use a personal loan in Singapore to acquire funds for buying a car.

Five Things You Need to Do for a Loan in Singapore to Work for You

To have the loan work for you, it is important to carefully study the agreement and follow it faithfully. Here are the main things that you need to do:

  • Look for a loan that comes with better terms and conditions.
  • Calculate the monthly payments and pay them on time for the entire loan term.
  • Adjusting your budget to give preference to loan repayment.
  • Review your credit score and if it has improved, go for refinancing.
  • If you notice that your salary will be late, even if it just for a few days, communicate with the lender indicating the delay to avoid getting negative feedback sent to credit reference agencies.

As you can see, a loan in Singapore can be your way out of trouble or serve as a stepping stone to success. Make sure to only get the best loan in Singapore by applying through Lendela. You also have to be prepared for one thing – repaying the loan.

Do not fear taking a loan; plan well for it and your life will change forever.

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Loans

Check These Documents Before You Buy a Resale House!

A house put on sale by the initial buyer is called a resale house. Buying a resale house has its own merits and challenges. While it could have more warmth, being owned before, it could have some legal complications too. Therefore, while buying a resale property, you must pay extra attention to the approvals and documentation. If you are looking forward to buying a resale house, here are some documents you must check.

  • Title deed

The title deed is the primary document that proves the sales and transfer of the property from the seller to the buyer. It contains the name of the seller, details of the loan, information about the property, etc. This document proves that the seller has a clear title of ownership and a marketable title.

  • Sales deed

It is a legal document to prove the sale of the property. A sale deed is registered in the registrar office after the purchase process is complete. You need to collect and sign this document after the flat is transferred to you and you have received the title deed. You must carefully read the documents to avoid any hassle in future.

  • Encumbrance certificate

An encumbrance certificate proves that the property is free from any mortgage and legal liabilities. You can get this document from the sub-registrar office where the document is registered. All the transactions related to the property are mentioned in this document. The encumbrance document proves that the property is not partially owned by someone else.

  • Building plan

It’s crucial to ensure that the building plan is approved by the authorities. Therefore, you must ask for a building approval certificate or building plan while buying a resale property. This plan should have a blueprint of the property, its layout, construction measurement, etc. Ensure that the property has no unapproved construction as it can cause you problems later.

  • Occupancy certificate

This document is issued by local authorities and municipality to indicate that the construction of the property is safe and is compliant with all the bylaws of the electricity, sanitation and other amenities. You must take this certificate to ensure that the building is fit for habitation and has adhered to all the laws and compliances.

  • No Objection Certificate

No Objection Certificate or NOC certifies that the competent authorities like municipality, electricity, sanitation, gas, water, etc., have no objection to the sale of the property, and no dues are remaining for the seller to pay. You will need to furnish the NOC if you plan to apply for home loan.

Buying a resale house is often convenient as it is usually priced lower than a new property and is available for immediate possession. However, it could have legal complications due to incomplete documents or approvals. Therefore, whenever you plan to buy a resale property, ensure that you check all the documents thoroughly. You must also inquire about the documents required for home loan to ensure that you can borrow funds for purchasing the resale house in a hassle-free manner.

 

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